Spain

Tax rate 2012 Spain

Corporate tax

Rate

The standard corporate tax rate of Spain is 30%. Small to medium-sized companies may have reduced rates. The tax is levied on corporations and company profits consists of business income and capital gains. Nonresident companies are only taxed on Spanish-source income and capital gains.

Taxation of dividends

Dividends from a Spanish resident corporation, both resident and foreign corporations are effectively taxed with corporate tax rate of 30%(unless reduced rate), as well as double tax relief may be applied.

Capital gains

Capital gains is taxed at the ordinary flat corporate tax rate of 30%(unless reduced rate).

Losses

Losses can be carried forward up to 18 years(before 2012 only 15 years). No carryback is allowed. Possibility for companies with a turnover between EUR 20 million and EUR 60 million may apply carry forwards of losses up to 75% of the taxable profit. If the tax period is beginning on 2011, 2012, 2013.

Withholding tax

Dividend is taxed at 21% for 2012 and 2013. This was increased from 19% in earlier years. The rate may be reduced if there is an applicable tax treaty. If an intercompany payment to resident of other EU member states may be exempt from Spanish withholding tax, but only if the foreign company has continously held the share capital of at least 5% in 1 year or more.

Interest rate paid to non residents was also temporarily increased from 19% to 21% for 2012 and 2013. Rate may be reduced if there is a tax treaty in hand.

Royalties are taxed at a rate of 24.75%(temporarily increased from 24% for 2012, 2013).

 

Individual tax

General

Individuals living or regularly residing for more than 183 days of the tax year or if the main company of the taxpayer’s business is based in Spain or that the economic interest is in Spain, is considered a resident for tax purpose. Individuals are taxed on their worldwide income. Nonresidents are taxed separately on their Spanish source income.

Taxable income

Taxable income for an individual is considerd to conclude employement, from salaries, wages and professional income, capital gains, dividends and interests. For 2012 and 2013 a progressive rate from 21% to 27% applies.

Rates

Progressive tax rates is levied on income tax, which can be of up to 24.75% to 56%.

Capital Gains

Capital gains for 2012 and 2013, Spain applies a progressive rate from 21% of up to 27%.

Deductions

Certain expenses are deductable from an individuals income. Social security is deductable.

Real Estate

Individuals are subject to a municipal tax rate in which the real estate is located. The real estate tax is levied of a rate up to 10%.

Net Worth Tax

The net worth tax was reintroduced for tax years of 2011 and 2012, effectively a progressive rate from 0.2% to 2.5%. The first EUR 700,000 is excluded from this taxation.

Inheritance Tax

Inheritance and gift taxes are imposed on all Spanish residents. The rate is progressive up to 34%.

Social Security

Employed individuals contributes to the social security. The individuals employer contributes 28.3% of the total contribution, whereis the emplyer contributes with 23.6% and the employee 4.7%.

VAT

VAT applies to all sales of goods, services and imports. The VAT is 18%, and with a lower rate of 8% and 4%.

 

Other

Tax year. Calendar year.

Tax treaties. Spain currently has 70 treaties.

Filing requirements. Spain applies a filing & payment is done on a quarterly basis, companies with a turnover exceeding approximately EUR 6 million are due on a monthly basis.

Registration (for VAT purpose). All taxpayers in Spain that carry out transactions, must register for VAT.

 

Links

Tax authorities. Agencia Estatal de Administración Tributaria.

Consulate

Local Tax Resources

Chamber of commerce

(Online realtor/stock exchange)